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Just days after reassuring worried customers, Marius Reitz, managing director of crypto exchange Luno Africa, recently reaffirmed that the company was unaffected by Genesis Capital’s decision to suspend withdrawals. He added that Luno customers still have access to savings wallet funds despite his lending partner’s decision to freeze withdrawals.

Clients retain access to savings wallet funds

According to Marius Reitz, managing director of crypto exchange Luno Africa, his company is operating normally and has not been affected by Genesis Capital’s suspension of “redemptions and new loans”. Reitz added that the Digital Currency Group (DCG)-owned exchange has so far seen “no significant changes in deposits, withdrawals or trading volumes.”

As reported per News, Genesis had suspended client withdrawals “in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.” After the announcement of Genesis, which is also owned by DCG and is Luno’s lending partner for its savings wallet, rumors that the crypto exchange might be suspending withdrawals began to swell.

To quell speculation, Luno, who was acquired by DCG in 2020, initially issued a statement on Nov. 16, which reassured worried customers that it had taken steps to ensure that access to savings wallet funds would be retained “in case withdrawals from Genesis were not possible.” However, continuing reports suggesting that Genesis fails to plug in a billion dollar hole in his books fueled rumors of bankruptcy.

Luno an independent operating subsidiary of DCG

Although Genesis has since ruled out filing for bankruptcy, the lingering rumors have apparently forced Luno’s chief executive to push back against withdrawal freeze speculation. In his final remarks on the matter, Reitz would have said:

Luno remains an independent, wholly-owned operating subsidiary of DCG and that has not changed. Luno’s customers and operations were unaffected during this time.

In an earlier statement, the crypto exchange claimed that “all savings wallet funds are now on the Luno platform,” which meant customers had full access.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

Image credits: Shutterstock, Pixabay, Wiki Commons

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